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Telecom Italia (NYSE:TI) is rebuilding its strategy under its new management, and Israel technology may find itself on the list of core investments, a top source at the company told

The Italian telco has hunkered down and frozen decision-making since Pirelli and Benetton took over its parent company, Olivetti, and Pirelli CEO Marco Tronchetti Provera replaced Roberto Colaninno.

As Telecom Italia settles down under its new masters, decision-making processes are on hold, waiting for fresh guidance.

With a capital-debt ratio of 0.92, the company will be certainly trimming down its investment to core business only. While Israel is not first on their list of priorities to examine, "There's a good chance Israel will be included among these 'core investments'," the source says. "Telecom Italia knows Israel well and sees it as a technological center."

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Telecom Italia had considered investing in Bezeq, but was deterred by the Israeli phone company's internal problems, not to mention the political situation. It also mulled increasing its almost-30% stake in the long-distance carrier Golden Lines, but hasn't made any moves.

In the past, the company's venture capital division invested in startups through Jerusalem Venture Partners and Gemini, including in startups LocatioNet and KereniX.